July 2012

The second investment that didn’t fall through was end of June. Although that occurred in June, it is an experience that needs sharing. For this opportunity, a large investment was needed (funds required were $500k to $1M). Quite often these type of investment are syndicated. That means that the investment is to be shared amongst 4 to 5 investors. That is a completely different arena and requires not only synergy between the investor and the entrepreneur(s), but also amongst the investors themselves.


It was precisely there were the “problem” occurred. In the group of four investors, three had similar ideas, principles, experiences and approach and almost naturally rallied together. The forth investor, already know to the founders in a much earlier stage, became more or less isolated. What happens then is nothing different from what happens with school kids during lunch break. We play tricks and games to get our way. As soon as that starts, you know it is the beginning of the end. A shame though, as the company was more than worth investing.


Still, will needless to say keep a close eye on both companies.


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